Airport, City Deal On 193 Acres Being Carefully Prepared

July 18, 1989|By MARK DAVIDSON Staff Writer

NEWPORT NEWS — Developers are willing to buy and the city's willing to sell, but after three months the lawyers haven't finished the paperwork to transfer 193 acres near Patrick Henry International Airport to the city.

"There is a lot of interest, everybody from retailers to wholesalers to manufacturers," said city Planning and Development Director Paul F. Miller. "I've got a whole file. But we can't aggressively do anything until we own that land."

The property belongs to the Peninsula Airport Commission, which operates Patrick Henry. As part of a tentative deal reached in March, the commission will transfer the 193 acres to the City Council in exchange for $14 million the commission needs to build a seven-gate airline terminal.

The council then would set up a special authority to sell and develop the property.

Miller, who is eager to contact prospective buyers, said he had expected the land would be in the city's hands by now. But after months of negotiations, City Attorney Verbena Askew and the airport's attorney haven't hammered out a final agreement.

Askew said she can't predict exactly when the land transfer will take place, but said there are no particular sticking points.

In addition to her staff, Askew said she is reviewing the agreement with outside financial and legal consultants and individual council members to ensure that nothing is inadvertently left out.

"We are running this by a lot of folks so that we're covered," she said.

"We are trying to come to a meeting of the minds," she said. "It is going to be soon."

In the meantime, city and airport officials have been compiling a list of prospective buyers.

Miller said some would-be purchasers have been on file for months or even years, but interest was heightened last spring by the media attention given to the proposed expansion of Patrick Henry and a proposed deal involving the city of Hampton that fell through.

He said some companies appear to be more interested in locating near what could become a larger, busier airport. "Being next door to a brand new, successful and attractive place has some bearing."

The city plans to borrow $14 million for the new terminal and pay it off over several years. Most of the debt will be paid with money generated by a 2- cent increase in the real estate tax rate approved by the City Council in June.

The remaining debt would be paid with property taxes received by new businesses that develop the airport property. Miller said the longer the land sits undeveloped, the less income the city will receive to pay off the $14 million.